A German court has prevented the regulator to introduce the bitcoin monetary unit

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A German court has prevented the regulator to introduce the bitcoin monetary unit

During one of associated with cryptocurrencies Affairs Appeals court has blocked the attempt of exceeding the competencies from the BaFin — financial services Germany. The case concerned the legal classification of bitcoin, and the court had put in place the Agency is wrong who told the essence of the cryptocurrency.

BaFin has sought to introduce bitcoin as a payment currency in order to “subdue” his German law on banking activities. However, the court came to the following conclusion:

…Extending the concept of the calculation currency bitcoin BaFin essentially rejects the principle of legal certainty enshrined in article 103 (2) of the German Constitution. The Federal government cannot interfere in the laws and change the contents as it may be done by legislators.

This broadening of the concepts are really beyond the competence of the public authorities, which must apply the law, not to reinterpret it according to their needs. The court further analyzed the nature of bitcoin and decided that it has only the value that he attributed to the members of the network:

Bitcoin does not own or present comparable cost. It is not a currency and not a payment method accepted by law. Bitcoin is just a payment method, adopted by some participants in the economy. Consequently, the value of bitcoin depends mainly on how web users assign value to it.

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